Slides from the CEDIM Innovation Series presentation. Includes a new business model framework, the business model as strategy cube and a design thinking oriented approach to business model innovation. @cedim

1. Innovation Series™
New Growth through
Business Model
Innovation.
www.sniukas.com

3. Why What How

4. Why
is Business Model
Innovation important?

5. History of the concept.
Source: Bernd W. Wirtz: Business Model Management: Design – Instruments – Success Factors. Gabler 2011.

6. Source: Christoph Zott, Raphael Amit and Lorenzo Massa: The Business Model: Recent Developments and Future Research Journal of Management 2011 37:

7. “Get the business model wrong,
and there is almost no chance of
success...”
Prof. David Teece
University of California, Berkley.

8. “Business model innovation matters
and it is a top priority of CEOs.”

9. Source: IBM Global CEO Study 2006

10. Source: IBM Global CEO Study 2006

11. Source: IBM Global CEO Study 2006

12. „Innovation is front and center on the
corporate agenda, according to a
global survey. Executives are adding
more breakthrough innovations and
business model changes to their
portfolio to fuel the growth engine.“
Business Week, November 16, 2009

13. Source: Businessweek / BCG Innovation Survey 2009

14. Source: Bernd W. Wirtz: Business Model Management: Design – Instruments – Success Factors. Gabler 2011

15. Stagnating or
declining
revenues
Source: Moore, GA 2004, Darwin and the Demon: Innovating Within Established Enterprises. Harvard Business Review, 82

16. Source: Moore, GA 2004, Darwin and the Demon: Innovating Within Established Enterprises. Harvard Business Review, 82

18. Why is Business Model Innovation important?
(1) Major element of differentiation and
sustainable competitive advantage.
(2) Fundamental to performance.
(3) Means to adapt to the rapidly changing
environment and seize opportunities.
(4) Key to the commercialization of new
technologies.
Source: Sniukas (2012).

19. Business Model Innovation as a Strategic
Choice. Traditional Strategic Choices.
New
Products
Existing
Markets

20. Business Model Innovation as a Strategic
Choice. The Strategy Cube.
New
Products
Services New
Existing Business Models
Existing
Markets
Customer Segments
Source: Sniukas (2012).

21. Business Model Innovation as a Strategic
Choice. The Strategy Cube.
New
Products
Services Adjacent New
Existing Business Models
Existing
Markets
Customer Segments
Source: Sniukas (2012).

22. What
is Business Model
Innovation?

23. © Marc Sniukas - Doujak Corporate Development

24. Business Model Innovation…
…is the invention of new ways of doing business,
with the aim to provide new and/or increased value
for the customers, the company itself and its
stakeholders.
Source: Sniukas (2012).

25. Customer Value Proposition Ecosystem Value Proposition
What is your
value proposition?
Firm Value Proposition
Source: Sniukas (2012).

26. Customer Value Proposition
Who is your customer? What is his need? What is the solution
you offer?
Offering
Customer Segment Need Product + Service +
Business Model
Source: Sniukas (2012).

27. Ecosystem Value Proposition
Who are your partners? What is their need? What is your offer?
Stakeholders Needs Offering
Source: Sniukas (2012).

28. Firm Value Proposition
Strategic Organizational Financial
• Competitive • Efficiencies • Revenues streams
Advantage • Use of assets • Cost structure
• Innovation • … • Working capital
• Lock In • ...
• Image
• …
Source: Sniukas (2012).

29. Customer Value Proposition Ecosystem Value Proposition
Your business model
Enables this value creation.
Firm Value Proposition
Source: Sniukas (2012).

30. Customer Value Proposition Ecosystem Value Proposition
How do you organize to
Enable this value creation?
Firm Value Proposition
Source: Sniukas (2012).

31. Customer Value Proposition Ecosystem Value Proposition
Which activities and
Who provides
processes need to be
these?
performed?
Which assets and
How do you govern
capabilities are
the operations?
necessary?
Firm Value Proposition
Source: Sniukas (2012).

32. How
to innovate your business
model?

33. “New business model innovation continues to
represent a significant challenge for large
incumbent firms despite their access to resources,
market knowledge, and key technologies.”
(Koen et al. 2010 50)

34. Major challenges and barriers.
(1) Business Model Innovation Challenges
Different type of innovation
High risk and uncertainty
(2) Organizational Challenges
Lack of capabilities
New organization required: Yes/No?
(3) Individual Challenges
Mental models/cognitive maps
Change in behavior

35. The Business Model Innovation Loop.
Ideation
4
Experimentation 5
3 Interpretation
7
6
Launch
2
Evolution
Discovery
1
Start
Source: Sniukas (2012).

36. The Business Model Innovation Loop.
Define your Goal
4
• What are your objectives?
• Why are you embarking on
this journey?
5
3 • What is the problem you have
to solve?
• Assess your current growth
initiatives. 7
• Create awareness for the
6 need for Business Model
Innovation.
2
• Establish the team.
• Develop a common
1 understanding of the purpose,
the concepts used.
Start
Source: Sniukas (2012).

37. The Business Model Innovation Loop.
Find Facts & Inspiration
4
• Who are your customers?
• Why are they buying?
• Who are Non-Customers?
5
3 • Why are they not buying?
• Who are your competitors?
• What is the current offering?
• What are the dominant
7
business models?
• 6 What is your current business
model? SWOT?
2
• Which trends are impacting
Discovery your industry?
1 • What is your company really
good at?
• What assets could you use?
Source: Sniukas (2012).

38. The Business Model Innovation Loop.
Seek Understanding
4
• Make sense of the data.
• Find opportunities for new
growth and business model
5
innovation. 3 Interpretation
• What is the customers’ job-to-
be-done (really)?
• Which are the barriers to 7
consumption: Affordability,
access, skills, time,…? 6
• Develop assumptions of what
2
is really going on.
• Which opportunities do you
see? 1
Source: Sniukas (2012).

39. The Business Model Innovation Loop.
Generate and Refine Ideas
Ideation
4
• How do you want to seize the
opportunities?
• How can you overcome the
5
barriers to consumption? 3
• Brainstorming
• Concept development
• Document your assumptions 7
on why you think a particular
idea is a good solution. 6
2
1
Source: Sniukas (2012).

40. 25 strategies for reinventing your Business
Model.
WORKS ACROSS THE BUSINESS VALUE PROPOSITION
#10 Offer complementary products and services
#1 Challenge industry assumptions
#11 Offer solutions and experiences
#2 Look at completely different industries
#12 Offer bundles
#13 Switch your appeal: functional versus
emotional
#14 Focus on the job to be done
CUSTOMERS #14 Selectively eliminate, reduce, raise and create
#3 Target non-customers #15 Look at subsitutes
#4 Target less profitable customers #16 Expand the use of your assets and capabilities
#5 Target the least satisfied customers #18 Look at the customer experience
#6 Target the chain of buyers
#7 Segment according to commonalities HOW YOU DO BUSINESS
#8 Segment according to circumstances #19 Reinvent the customer interface (channels)
#9 Desegment the customer based #20 Reinvent your customer relationships
#21 Invent new revenue streams
#22 Price differently
#23 Reinvent you cost base
#24 Re-assess your key activities
#25 Collaborate with suppliers, partners, the network
and ecosystem
Source: Sniukas (2010).

41. The Business Model Innovation Loop.
Test your Ideas
4
• Make something real
• Test assumptions discussing
Experimentation 5 with your customers
3 • Test assumptions with
strategic experiments
• Get feedback
• Create knowledge about the
7
potential of your ideas
• 6 Learn what works and what
does not
2
1
Source: Sniukas (2012).

42. The Business Model Innovation Loop.
Learn & Adapt
4
• What are the insights gained
from experimentation?
• Which of your assumptions
5
are correct, which not? 3
• How do you need to adapt
your business model?
7
6
2
Evolution
1
Source: Sniukas (2012).

43. The Business Model Innovation Loop.
Go Large Scale
4
• Plan for action
• Prepare the organization and
the market for the launch
5
• Organizational Transformation: 3
Structures, processes,
systems, skills, assets,…
• Training 7
• Marketing
• Financing 6
Launch
• Scaling up
2
1
Source: Sniukas (2012).

44. Want more?

45. www.sniukas.com

46. “The difficulty lies not in
the new ideas,...
…but in escaping from the
old ones.”
John Maynard Keynes

47. Get in touch!
Marc Sniukas
marc@sniukas.com
www.sniukas.com
Thank you for your attention!